Fairfax Moved Towards Large Canadian Investment Funds for Blackberry Ltd (NASDAQ:BBRY)
Written by Stephanie Byars on September 10, 2013

According to a source with direct knowledge of the situation, BlackBerry Ltd (NASDAQ:BBRY)’s largest shareholder has moved towards several large Canadian investment funds concerning a deal to take the smartphone maker private, but the plan is still cloistered. The shareholder, Fairfax Financial Holdings Ltd, has a 10 percent stake, and its chairman and chief executive, Prem Watsa, has already left the board of BlackBerry to evade any likely clash of interest as the company analyzes its strategic options. The source, who asked not to be named because the preliminary discussion was still private, said that along with Watsa’s Fairfax there has been an early and informal move concerning a possible deal from another investor.

The source said that the company received different calls asking if they bring some kind of plan would it consider it. Fairfax has not replied to a request for comment, and Waterloo, Ontario-based BlackBerry said it does not give argument on speculation. BlackBerry Ltd (NASDAQ:BBRY) shares fell -4.25% in current session. BlackBerry, which has released market share for its competitors including Apple Inc (NASDAQ:AAPL)’s iPhone and phones employing Google Inc (NASDAQ:GOOG)’s Android technology, declared last month that it was exploring its options which might include an outright sale. Google Inc (NASDAQ:GOOG) shares were down -0.23% in current session. Facebook Inc (NASDAQ:FB) shares were down -0.98%, and trading at $43.61.

On Monday, the shares of BlackBerry has surged more than 6 percent after Britain’s Sunday Times newspaper reported that Watsa was finishing out a rescue deal for BlackBerry, with support from Canada’s significant pension funds. The source said any deal is expected to occupy more than one of Canada’s influential pension funds, which would have to consider the possible incentives of assisting a declining Canadian icon with the caution of involving in such a deal. BlackBerry shares finished at $11.53 on the Nasdaq, increased from $10.84 at closing on Friday, providing the company a market capitalization of just over $6 billion. The source said that if a tangible plan was on the table then things would probably “go quiet” while investors sought their options.

Is there any news pending that would scare the shorts into covering? I see the next ER is still a month and a half away.

Besides all the positive news and reviews, not at the moment. It's one of the top ranked stocks ready for a breakout and wanted another opinion so I know whether to concider throwing more it it before their next ER. hey, I finally have an easy day at work so I'm looking at my other fun besides BBRY.

Is it just me or does the news feed on Googlefinance often filter out an inordinate amount of positive articles
about BBRY not long after they appear? I get the news feed is automated, BUT, but I've seen one too many
go into thin air.

Is it just me or does the news feed on Googlefinance often filter out an inordinate amount of positive articles
about BBRY not long after they appear? I get the news feed is automated, BUT, but I've seen one too many
go into thin air.

"We did not cut half of our sales force," said Lisette Kwong, senior manager, corporate communications at BlackBerry. "Instead we are moving a small number of US-focused sales roles that were based in Canada to the US to be more closely aligned with our customers. This is part of the second phase of our transformation plan."

BlackBerry reportedly has laid off more than half its sales force, amid weak smartphone sales and talk of a buyer for the former tech leader. Cantech cited a source that consumer sales are basically "gone" while the enterprise sales force is "gutted."

The cuts were announced at the BlackBerry's Waterloo, Ontario, headquarters, with U.K. job cuts expected in a few days, the source told the Canadian online technology magazine.

The sales force cuts come as buyout speculation picked up. Top BlackBerry shareholder Fairfax Financial has approached several Canadian investment funds about taking the smartphone maker private, a source told Reuters. Fairfax does own 10% of BlackBerry. The source did add that the discussions are at the "airy fairy" stage.

But the latest report helped BlackBerry rise 6.4% to 11.53 in Monday trading.
However, BlackBerry's business is suffering. Its much-hyped BlackBerry 10 operating system and two new smartphones have failed to revive company fortunes. Indeed, BlackBerry is now the No. 4 wireless operating system, falling behind Windows Phone. Microsoft (MSFT) last week announced its would buy the handset unit of Nokia (NOK), the main user of Windows Phone.

Windows Phone and BlackBerry trail far behind handsets using Google (GOOG) Android as well the Apple (AAPL) iPhone. Apple is expected to unveil one or more new iPhone models Tuesday.

"We did not cut half of our sales force," said Lisette Kwong, senior manager, corporate communications at BlackBerry. "Instead we are moving a small number of US-focused sales roles that were based in Canada to the US to be more closely aligned with our customers. This is part of the second phase of our transformation plan."

We were over-bought yesterday and outside the Bollinger Bands, so now we will fall back inside them where we belong. Support is at our prior resistance of $ 11.10/shr so we'll fall back to that level too. Note how powerful the 200-ema has been to the stock, every time we touch it we bounced off it, now we are trying to get back up to it again and clear it to begin a serious rally. This all takes time.

Sorry Gregg,

I have to put you on ignore after reading this in-depth comment you made on SeekingAlpha, I have tried for months to understand why you even post here: